Tax competiton between states is good

This is another reason why increased state sovereignty is better. States are forced to compete against each other for residents via lower taxes, less onerous regulations and business environments, quality of life, etc. It’s also good to see an update from Dr. Laffer in print. ;-)

The (Tax) War Between the States – WSJ.com: “A record eight million Americans moved from one state to another last year. Where is everyone going, and why? The answer has little to do with climate: California has arguably the nicest climate of any state in the nation — yet in this decade more Americans have left the Golden State than entered it.

Migration patterns instead reveal which states have the most dynamic and desirable economies, and which are ‘has-been’ states. The winners in this contest for the most valuable resource on the globe — human capital — are generally the states with the lowest tax, spending and regulatory burdens. The biggest losers are almost all congregated in the Northeast and Midwest. Liberals contend that tax rates, regulations, forced union laws and runaway government spending don’t matter when it comes to creating jobs, high incomes and a higher quality of life. People tell us otherwise by voting with their feet.”

Technorati Tags: